Dongnam Chemical Co., Ltd. (023450) AI Stock Analysis

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Dongnam Chemical Co., Ltd.

(Korea Exchange:023450)

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Rating:67Neutral

Price Target:KRW 32,170.00▲(4.62% Upside)

Action:initiatedcoverage

Date:10/28/26

The score is driven primarily by improving financial performance (recovering growth and margins, strong ROE, and manageable leverage) and supported by attractive valuation (low P/E and high dividend yield). These positives are tempered by weak technicals (negative MACD, price below key short-term averages) and mixed cash flow consistency, which increases through-cycle risk for a chemicals business.

Positive Factors

Improving Revenue and MarginsRenewed revenue growth alongside expanding net and operating margins indicates that operating performance is recovering from weaker periods. If this improvement persists, it can strengthen earnings capacity and provide more internal resources for investment, resilience, and future growth.

Negative Factors

Cyclical Earnings and Sub-Peak MarginsProfitability has improved but remains below earlier peak levels, while the historical revenue decline demonstrates meaningful cyclicality. This can make earnings less predictable, limit the durability of current margins, and expose the company to recurring downturns in chemical demand.

Dongnam Chemical Co., Ltd. (023450) vs. SPDR S&P 500 ETF (SPY)

Market Cap: KRW 102.45B
Dividend Yield: 5.12%
Average Volume (3M): 979
Price to Earnings (P/E): 8.7
Beta (1Y): 0.08
Revenue Growth: 13.39%
EPS Growth: 137.21%
Country: KR
Employees: 171
Sector: General
Sector Strength: 55
Industry: Chemicals

Dongnam Chemical Co., Ltd. Business Overview & Revenue Model

Company Description

Established in 1965 and headquartered in Gongju, South Korea, Dongnam Chemical Co., Ltd. is a producer and supplier of various chemical products and surface-active agents within the country. The company's diverse offerings include nonionic, cationic,...

Dongnam Chemical Co., Ltd. Financial Statement Overview

Summary

Fundamentals are improving but still cyclical: revenue growth is strong (~9.5%) with better profitability (net margin ~5.5%, operating margin ~6.9%) and strong ROE (~21%) alongside moderate leverage (~0.51x debt/equity). Offsetting this, margins are below prior peak levels and cash flow consistency is mixed, with free cash flow down ~13% year-over-year and uneven conversion over time.

Income Statement

72Positive

Balance Sheet

70Positive

Cash Flow

61Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	216.55B	194.26B	186.40B	166.72B	193.40B	160.30B
Gross Profit	24.63B	18.76B	18.44B	17.21B	22.40B	22.94B
EBITDA	21.24B	15.77B	16.37B	14.45B	17.74B	19.43B
Net Income	11.87B	6.99B	6.71B	5.95B	10.62B	11.73B
Balance Sheet
Total Assets	115.57B	95.15B	96.87B	97.57B	92.09B	90.60B
Cash, Cash Equivalents and Short-Term Investments	8.52B	1.73B	1.15B	937.18M	510.54M	5.29B
Total Debt	29.86B	20.21B	27.00B	26.30B	29.61B	23.12B
Total Liabilities	56.81B	40.61B	43.12B	45.75B	42.06B	44.34B
Stockholders Equity	58.76B	54.54B	53.74B	51.82B	50.03B	46.26B
Cash Flow
Free Cash Flow	11.08B	14.05B	3.20B	6.70B	-3.99B	9.99B
Operating Cash Flow	14.11B	15.24B	6.05B	18.41B	12.89B	12.55B
Investing Cash Flow	-2.92B	-1.04B	-2.95B	-11.07B	-17.19B	-1.31B
Financing Cash Flow	-10.69B	-13.45B	-2.85B	-6.98B	-131.92M	-9.31B

Dongnam Chemical Co., Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price30750.00

Price Trends

50DMA31217.00Negative

100DMA29811.02Positive

200DMA29924.15Positive

Market Momentum

MACD-409.30Positive

RSI51.16Neutral

STOCH38.20Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KR:023450, the sentiment is Positive. The current price of 30750.00 is above the 20-day moving average (MA) of 30715.00, below the 50-day MA of 31217.00, and above the 200-day MA of 29924.15, indicating a neutral trend. The MACD of -409.30 indicates Positive momentum. The RSI at 51.16 is Neutral, neither overbought nor oversold. The STOCH value of 38.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KR:023450.

Dongnam Chemical Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

KR:023450 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KR:014440	85Outperform	KRW 91.55B	5.00	―	7.45%	6.64%	2.60%
KR:134380	85Outperform	KRW 220.44B	7.49	―	4.40%	30.03%	83.76%
KR:025000	71Outperform	KRW 246.15B	2.49	―	7.01%	-8.64%	121.40%
KR:023450	67Neutral	KRW 104.75B	8.73	―	5.12%	13.39%	137.21%
KR:102260	61Neutral	KRW 168.43B	3.98	―	4.42%	8.07%	33.39%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
KR:011500	52Neutral	KRW 188.27B	20.05	―	0.32%	0.88%	143.75%

* General Sector Average

Performance Comparison

KR:023450 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
KR:023450	Dongnam Chemical Co., Ltd.	30750.00	679.35	2.26%
KR:011500	Hannong Chemicals Inc.	12310.00	-4153.79	-25.23%
KR:014440	Youngbo Chemical Co., Ltd.	4695.00	572.43	13.89%
KR:025000	KPX Chemical Co., Ltd.	60600.00	19038.75	45.81%
KR:102260	DONGSUNG CHEMICAL Co., Ltd.	3390.00	-411.45	-10.82%
KR:134380	Miwon Chemicals Co., Ltd	11370.00	3099.07	37.47%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 28, 2026

Dongnam Chemical Co., Ltd. AI Stock Analysis

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